From the following Balance Sheets of a company you are required to prepare: (i)

Schedule of changes in the working capital, and (ii) a statement of sources and applications of funds.

January, 2004 December, 2004 Rs. Rs.

Cash 1,40,000 1,44,400 Account Receivable 10,000 20,700 Inventories 15.000 15,000 Land 4,000 4,000 Buildings 20,000 16,000 Equipment 15,000 17,000 Accumulated Depreciation (5,000) (2,800)

Patents 1,000 900 2,00,000 2,15,200 Current Liabilities 30,000 32,000 Bonds Payable 22,000 22,000 Bonds Payable discount (2,000) (1,800)

Capital Stock 1,35,000 1,43,500 Retained Earnings 15,000 19,500 2,00,000 2,15,200

(a) Income for the period Rs. 10,000.

(b) A building that cost Rs. 4,000 and which had a book value of Rs. 1,000 was sola for Rs. 1,400.

(c) The depreciation charge for the period was Rs. 800.

(d) There was Rs. 5,000 issue of common stock.

(e) Cash dividends Rs. 2,000 and a Rs. 3,500 stock dividend were declared.